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Avraham "AY"  Rappaport, CLTC

President, Financial Professional

 

Yaniv "Jay" Natanov

President, Financial Planner

 

Eli Rappaport

Vice President, Financial Planner

 

Shlomo Rosenstein

Financial Professional

 

Ozzie Marizan

Financial Planner

 

Joseph Greer

Office Administrator

 

Premier Financial

6395 Dobbin Road, Suite 102, Columbia, MD 21045

 

Phone:  240-309-6001

 

Email: joseph.greer@prudential.com

Website: premierfinancial1.com

September/October 2022

Is a Variable Annuity Right for You?

Is a Variable Annuity Right for You

A variable annuity* is a contract between you and an insurance company that offers the potential for providing a steady income during retirement or for a set period. You can purchase an annuity by making periodic payments over time or with one lump-sum payment.


The Mechanics
Variable annuities have an accumulation phase and an annuitization (payout) phase. During the accumulation phase, you make payments into an investment account. The money is invested in the options you’ve selected, typically mutual funds that hold stocks, bonds, money market instruments or a combination of these. The value of the annuity will depend on the performance of its underlying investments.

In the annuitization phase, you receive regular income payments based on the value of the annuity contract. You can choose to take payments for the rest of your life—or your and your spouse’s lives—or for a period that you set. Income and investment gains are tax deferred until you begin receiving payments, at which time, they’ll be taxed at your regular income tax rate.


Who Should Buy Them?
Variable annuities may be suitable for investors who are looking for capital appreciation and have a high tolerance for risk and a long investment time frame. They may not be appropriate for investors who are close to retirement or who’ll need the income relatively soon. Help protect your investment by purchasing annuities issued by insurance companies with strong financial ratings.


The Death Benefit
Variable annuities typically include a death benefit, which will be paid to the beneficiary you’ve named. Your beneficiary will owe taxes on the annuity’s appreciated value at your death.


Your financial professional can explain the requirements, fees, and suitability of these investments for your portfolio and answer your questions so you can make a well-informed decision.


*Annuity products are not FDIC-insured, and their guarantees are backed solely by the claims-paying ability of their issuing life insurance company. Distributions from annuities are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.

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Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Joseph Greer is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
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